You are getting more on the revenue side and earnings side to indicate a soft patch as opposed to double dip with the exception of housing and jobs growth. So some of the fear that was building into the market is coming off, said Paul Mendelsohn, chief investment strategist at Windham Financial Services in Charlotte, Vermont.

Solid economic data in Europe also helped boost futures, as Britain's economy grew almost twice as fast as expected in the second quarter and German business sentiment leaped by a record margin in July.

The data cheered investors ahead of the European banking stress tests results due at noon EDT. In an effort to ease fears over the potential impact of the euro zone debt crisis on Europe's banking system, regulators assessed how 91 banks would cope with another downturn.

Earnings are coming in very, very well and economic data, at least overseas, came in strong. Now all we have to do is get through the stress tests this afternoon and break through this 1104, 1105 level on the S&P 500, and we could have a nice rally on our hands, added Mendelsohn. The S&P closed at 1093.67 on Thursday.

Diversified U.S. manufacturer Honeywell International Inc recorded a 4 percent rise in profit and boosted its forecast, citing recovering demand for industrial products. Its shares were little changed.

European shares edged up in Friday morning trade, extending a rally into a fourth day, as corporate earnings were well received and on cautious optimism over the bank stress tests.

Asian stocks rose Friday as strong profits from economic bellwethers such as Caterpillar and UPS tempered concerns about a global slowdown, while the euro steadied ahead of the bank stress tests.